Albany International Corporation (AIN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,126,480 | 1,027,600 | 913,291 | 868,834 | 1,054,130 |
| Property, plant and equipment | US$ in thousands | 601,989 | 445,658 | 436,417 | 448,554 | 466,462 |
| Fixed asset turnover | 1.87 | 2.31 | 2.09 | 1.94 | 2.26 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,126,480K ÷ $601,989K
= 1.87
Albany International Corp.'s fixed asset turnover ratio has shown some fluctuation in recent years. The ratio decreased from 2.26 in 2019 to 2.01 in 2020 before increasing to 2.13 in 2021 and further to 2.32 in 2022. However, in 2023, the ratio declined to 1.91.
A higher fixed asset turnover ratio is generally preferable as it indicates that the company is generating more sales revenue per dollar of fixed assets. The decreasing trend in 2023 may imply that Albany International Corp. was less efficient in utilizing its fixed assets to generate sales compared to the previous year.
It is essential for the company to further analyze the reasons behind this decline in the fixed asset turnover ratio in 2023 and identify opportunities for improving asset utilization efficiency in order to enhance overall operational performance and profitability.